An Economic Analysis of Soybean Integrated Pest Management

The type ofpest management strategy a farmer chooses is influenced by the amount of risk associated with alternative strategies. This paper examines the attractiveness of alternative pest management strategies used on a representative Virginia soybean farm. Probability distfibutions of net revenue associated with alternative pest control options are simulated and then compared using generalized stochastic dominance criteria. Results suggest risk‐averse and, in some cases, risk‐preferring farmers would prefer strategies which incorporate an integrated pest management approach to pest control rather than one which relies completely on chemical pest control.